Obama Said to Choose Raskin for Deputy Treasury Secretary

Federal Reserve Governor Sarah Bloom Raskin was nominated to the Fed in March of 2010. Photographer: Andrew Harrer/Bloomberg

July 31 (Bloomberg) -- President Barack Obama plans to name
Federal Reserve Governor Sarah Bloom Raskin as deputy Treasury
Secretary, making her the highest-ranking woman in the history
of the Treasury department, according to two people familiar
with the matter.

Raskin, 52, has been vetted for the position and Obama
plans to nominate her in the coming weeks, according to the
people, who asked for anonymity to discuss the personnel
decision before an announcement. Treasury Secretary Jacob J. Lew
has been told of the choice, according to one of the people.

Prior to serving as Maryland’s top financial regulator from
2007 to 2010, Raskin was a managing director at Promontory
Financial Group, which advises banks. She was nominated to the
Fed in March of 2010.

Her departure will leave a second opening on the Fed’s
board. Governor Elizabeth Duke, who also focused on regulation,
announced July 11 that she would be leaving the central bank at
the end of August.

In addition, Fed Chairman Ben S. Bernanke’s term ends early
next year. Obama is considering “several candidates,” said
National Economic Council director Gene Sperling, at a Christian
Science Monitor breakfast in Washington today.

The president has indicated he won’t make an announcement
on a replacement until after August.

Obama defended former Treasury Secretary Larry Summers, a
potential candidate for Fed Chairman, in a meeting with
Congressional Democrats today.

“He took a minute to stand up for Larry Summers,” said
Representative Brad Sherman of California. Obama told Democrats
he hadn’t made a decision about whom to appoint as Fed chairman.

White House spokeswoman Amy Brundage didn’t respond to a
request for comment.